- Divorced women face pension shortfall
Divorced women face pension shortfall
Divorced women face pension shortfall3rd July 2020 - Published by
Research to be published in an upcoming report on “under-pensioned groups” by the Pensions Policy Institute indicates that divorce has a bigger impact on women’s retirement provision than on that for men.
Some of this is said to be attributed to underlying gender pay inequality, and to the fact that divorced women are twice as likely not to be saving anything for retirement compared to men. Worrying, however, is the suggestion that the primary barrier to achieving adequate retirement arrangements is that during divorce there is a “high prevalence” of pensions not being considered in the process, with it being said that in some seven out of ten divorce settlements, pensions are not taken into consideration.
We ensure we take pensions into account when advising on any divorce case. This frequently results in pension sharing orders, depending upon the length of the marriage, the ages of the parties and so on, to achieve equality of income from those pension resources on retirement. In many cases, couples prefer that any pension adjustments to achieve equality of income, or indeed capital value, should be offset so that there would be an unequal division, for example, of non-pension assets.
Once the research is published, we will be able to consider more closely whether in the seven out of ten cases referred to, choices have been made to offset pension claims rather than the fact that they have not been taken into consideration at all. In any event, the research highlights the importance of obtaining good and proper advice on the financial aspects of a divorce and in particular pension arrangements.
If you would like advice on anything mentioned in this article, please contact Colin Davies on 0161 838 8180 or email firstname.lastname@example.org.